by Cindy Gonzalez, Nebraska Examiner
April 30, 2026
LINCOLN, Nebraska — Gov. Jim Pillen joined Nebraska business leaders Thursday in throwing more support behind the proposed marriage of Omaha-based Union Pacific and Atlanta-based Norfolk Southern as the railroads filed an amended merger application with federal regulators.
An earlier application had been rejected as incomplete in January by the U.S. Surface Transportation Board, which wanted more detail, including anticipated impact on competitors and customers.
Pillen said the merger, which would create America’s first transcontinental railroad, would ultimately benefit American farmers in moving their products across the country.
“Farmers operate on tight timelines,” Pillen said in a statement. “When crops are ready, they need to move. Today’s rail system forces too many shipments through time-consuming, costly handoffs between carriers. That’s not competition. That’s a structural constraint.”
The railroads say the $85 billion deal would provide a one-carrier coast-to-coast rail system. The merged systems are expected to create a combined enterprise of more than $250 billion.
The Nebraska Legislature has tuned in to the proposed merger as well, recently passing a corporate tax incentive package focused largely on keeping and growing quality railroad jobs in Nebraska in a post-merger environment.
In a joint statement Thursday, Union Pacific and Norfolk Southern noted that growth would create more high-paying union jobs. The amended application estimates the combined company will need 1,200 new union jobs by the third year of the merger to handle new business, up from 900 in the original application.
The proposed merger of the two Fortune 500 transportation companies faces opponents that include some major competitors, rail labor unions, trade associations and the American Farm Bureau Federation. A newly formed “Stop the Rail Merger Coalition” asserts the “unprecedented concentration of power” would drive up prices for consumers, weaken the workforce and hurt the nation’s supply chain.
The railroads said in their statement that their analysis shows the merger could save shippers an estimated $3.5 billion annually in lower freight costs, which they said is savings that would flow to consumers.
The Greater Omaha Chamber, in a statement backing the merger, emphasized the potential to “expand competition, strengthen the national freight network, and deliver meaningful economic benefits for businesses across the country.”
“By eliminating costly handoffs between carriers, the combined system would enable faster freight movement and unlock new opportunities for growth across the supply chain,” said the Omaha Chamber, which represents nearly 3,000 member companies.
“Since the beginning, Union Pacific and Omaha have grown together, with a shared history rooted in building connections that power our economy,” said Heath Mello, the Omaha Chamber’s president and CEO. He called the merger Union Pacific’s “biggest move yet.”
Former State Sen. Matt Williams of Gothenburg, interim president of the Nebraska Chamber of Commerce & Industry, which represents up to 1,500 member businesses, said the merger would lead to long-term economic competitiveness.
“As a Nebraska-based company with deep roots in our state, Union Pacific plays a significant role in supporting jobs, investment, and economic activity across Nebraska,” Williams said. “This proposal builds on that foundation by strengthening the connectivity and performance of the broader national freight network.”
Nebraska Examiner is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Nebraska Examiner maintains editorial independence. Contact Editor Aaron Sanderford for questions: info@nebraskaexaminer.com.
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